Judge signs off on $1.6 billion Toyota deal

In this Nov. 5, 2010, file photo released by the Utah Highway Patrol, a Toyota Camry is shown after it crashed as it exited Interstate 80 in Wendover, Utah. HO, ASSOCIATED PRESS

SANTA ANA – A federal judge Friday confirmed a $1.6 billion settlement between Toyota and vehicle owners who sued for loss of value because of unintended acceleration, calling the deal "extraordinary" in many ways.

"This settlement is fair, adequate and reasonable," U.S. District Judge James Selna said during a 90-minute hearing in Santa Ana. "Moreover, it's extraordinary."

Attorneys for vehicle owners, members of a class-action suit made up of some 22 million Toyota, Lexus and Scion owners, hailed the agreement as unique.

Among other benefits, people who made claims will receive anywhere from $125 to $10,000 in cash depending on the vehicle, they said.

Toyota and attorneys in the class-action lawsuit have agreed on figures that include cash payments from a pool of about $250 million to eligible customers who sold or turned in leased vehicles between September 2009 and December 2010.

"It is one of the first class-action settlements where all the money gets distributed to class members," said Mark Robinson Jr., Newport Beach attorney and co-lead counsel. "I think it is a historical settlement."

Toyota attorneys told Selna the company is pleased because through the settlement Toyota "has tried to drive value to its customers."

"This is a class-member, customer-friendly resolution," attorney John Hooper said.

Toyota said in a statement the agreement "allows us to resolve a legacy legal issue in a way that provides significant value to our customers and demonstrates that they can depend on Toyota to stand behind our vehicles."

Selna's ruling also approved $227 million in attorney's fees and expenses for lawyers from 30 firms. The decision caps the economic loss portion of litigation by owners who said the value of their vehicles plunged after recalls over sudden and unintended acceleration.

Settlement negotiations over the last year and a half were sometime heated and Frank Pitre, another co-lead counsel, likened them to a boxing match.

"It was like Ali Frazier," Pitre said. "It isn't perfect. No settlement ever is" but it is the best that could be achieved.

About 500,000 Toyota customers have put in a claim so far, with a deadline of July 29.

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